The Queensland government has cut its stake in
Aurizon
to below 5 per cent after selling $350 million of shares in the rail group to pay down debt.

The government on Tuesday confirmed StreetTalk’s report that it had sold 74.3 million shares at $4.71 per share on Monday night, reducing its holdings from more than 8 percent.

Treasurer
Tim Nicholls
said the state government had taken advantage of “favourable market conditions" to reduce the state’s holdings.

Investment group Perpetual is now Aurizon’s largest shareholder, followed by UK investor Children’s Investment Fund Management, both of which held more than 120 million shares each at the end of August.

Aurizon’s shares, which have risen some 27 percent in the year to date, closed on Monday at $4.67. The stock rose 1.8 percent on Tuesday morning to trade at $4.75.